NASDAQ index down close to -0.8%
After opening lower and moving into the black, US stocks have reversed course. The NASDAQ index is trading to a new session low at 9201.12. The S&P index also moved to a new session low at 3245.89.
Taking a look at the NASDAQ index on the one hour chart, the price moved up to test its 50 hour moving average, only to find sellers against that level (see white moving average line in the chart above currently at 9314.34). The price is currently trading between that moving average above and the lower 200 hour moving average below (currently at 9135.867).
Note that the last 2 tests of the 200 hour moving average back on December 3 and again earlier this week on January 27, found dip buyers leaning against that level. Going forward, should the 200 hour moving average be broken (and stay broken), there should be more downside momentum.
For now, the pair remains below the 50 and 100 hour moving average above, and above the 200 hour moving average below. There is a battle going on, but the resistance and support levels are clearly defined